Lending

Get an attractive yield by lending to established growing companies

Our investors provided loan funding to Great British Botanical, a manufacturer of premium greenhouses.

WHY LEND TO PRIVATE COMPANIES?

Lending offers a lower-risk route to private companies with the benefit of a fixed exit date. Our programme of lending offers attractive yields of 8% to 10% per annum. Some loans offer the opportunity to benefit from growth in the value of the borrower’s business, with the potential to pay out a bonus of around 40% of the loan amount.

If you have money on deposit, cash in a SIPP or in Cash ISAs, you can use this to build a diverse portfolio of loans with a target return of 12% to 15% per annum. Lending to private companies puts capital at risk and is an illiquid investment, whereas cash deposits do not usually place a customer’s capital at risk.

Our approach

Rockpool’s specialist team source prime lending opportunities from well-managed private companies requiring £2m to £10m of loan finance. Borrowers are required to show annual profits of at least two times their interest outgoings and have a strong capital base or be able to provide significant alternative security.

Routes to lending

Loans can be made through the Rockpool Innovative Finance ISA and the Rockpool SIPP. Lending to private companies also offers company owners a simple, low-cost route to inheritance tax mitigation.

CORPORATE INHERITANCE TAX SERVICE

ROCKPOOL SIPP

ROCKPOOL ifisa

selfselect service

Risk warning

Lending to private companies may not be suitable for you and your capital will be at risk. This sort of investment does not provide a reliable source of income and you may not be able realise your capital when you wish to. The tax benefits of investing in private companies depend on your personal circumstances, on the circumstances of each company and on rules and regulations. All of these could change, removing tax benefits you expected to enjoy.

Key benefits

Security

A strong security structure, including a full debenture, must be in place before we lend to any borrower.

Returns

Loans pay 8% to 10% interest p.a. and most loans come with a share in any growth.

Diversity

A transformer in action

NCE maintains mission-critical IT servers and data storage systems. Rockpool investors lent £4.6 million at an interest rate of 8% with a 5-year term. Security was in the form of debentures over all assets of the group.

The loan was repaid after two years and lenders benefited from equity share options giving a total return of £1.43 per £1 invested.

REGISTER WITH ROCKPOOL

Join our growing network of investors who enjoy the benefits of investing in private companies with the support of a professional.

Rockpool Investments LLP is authorised and regulated by the Financial Conduct Authority.

Your capital will be at risk and there is no guarantee of any investment return. The value of investments may go down and you could lose all of your investment. Private company investments are not listed on any market and this means that you may not be able to sell them when you want to do so. This sort of investment does not provide a reliable source of income. The tax benefits of private company investing depend on your personal circumstances and on compliance with the relevant rules. Past performance is not a reliable indicator of future results. We do not provide investment, tax or legal advice.

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To provide you with information on Rockpool opportunities, we need to know that you are able to understand the risks of investing in private companies.

Please tick all the boxes that apply to you*

I have been a member of a network of business angels for the last six months

I have made two or more investments in unlisted companies in the last two years

I have been involved in a professional capacity in private company financing at some time in the last 2 years

I have been a director, at some time in the last 2 years, of a company with an annual turnover of at least £1 million

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I may lose all the money I invest in private companies

My share of the value of a private company may be reduced if the company needs more money in the future and I can’t or don’t want to invest further on the terms available at the time

I may not be able to sell private company investments when I want to

Private company investments are not a reliable source of income

Tax reliefs for investing in private companies may be lost if I or the company fail to comply with applicable rules

Small companies are more likely to fail than large companies, because they tend to be more reliant on a few key people or customers or products or other factors

I wish to access Rockpool opportunities in my role as:*

A director or employee of a company with net assets of at least £5m

A director or employee of a company with net assets of at least £500,000 and the company has more than 20 shareholders

A trustee of a trust with net assets of £10m or more

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Thank you. To access Rockpool opportunities you will need to agree to the declaration below. Please read it carefully. It does not commit you to invest or pay any money.

I declare that I am a self-certified sophisticated investor for the purposes of the Financial Services and Markets Act (Financial Promotion) Order 2005 because at least one of the following applies:

I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;

I have made more than one investment in an unlisted company in the two years prior to the date below;

I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;

I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.

I understand that this means:

I can receive financial promotions that may not have been approved by a person authorised by the Financial Conduct Authority;

the content of such financial promotions may not conform to rules issued by the Financial Conduct Authority;

I understand that by making this declaration I may lose significant rights:

I may have no right to complain to either of the Financial Conduct Authority or the Financial Ombudsman Scheme;

I may have no right to seek compensation from the Financial Services Compensation Scheme.

I accept that I can I can lose the money I invest by making investment decisions based on financial promotions. I am aware that it is open to me to seek advice from someone who specialises in advising on investments.

I understand that Rockpool will store my personal information and will send me details of investments and other relevant information. My personal information will be protected in line with Rockpool’s privacy policy. I accept that information relating to investment opportunities will be provided to me on a strictly confidential basis and I undertake not to disclose such information to any person without prior written permission from Rockpool.

Rockpool will hold and process your data in order to fulfil our legitimate interest in serving you and communicating with you and in complying with regulatory and legal requirements. For details of how and why we process your data and details of how to exercise your rights, please visit Rockpool’s Privacy Notice.

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Thank you. To access Rockpool opportunities you will need to agree to the declaration below. Please read it carefully. It does not commit you to invest or pay any money.

I declare that I am a certified high net worth individual because at least one of the following applies:

I had, during the financial year immediately preceding the date below, an annual income to the value of £100,000 or more;

I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more. Net assets for these purposes do not include:

the property which is my primary residence or any loan secured on that residence;

any rights of mine under a qualifying contract of insurance within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; or

any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependents are), or may be, entitled.

I understand that this means:

I can receive financial promotions that may not have been approved by a person authorised by the Financial Conduct Authority;

the content of such financial promotions may not conform to rules issued by the Financial Conduct Authority;

I understand that by making this declaration I may lose significant rights:

I may have no right to complain to either of the Financial Conduct Authority or the Financial Ombudsman Scheme

I may have no right to seek compensation from the Financial Services Compensation Scheme.

I accept that I can I can lose the money I invest by making investment decisions based on financial promotions. I am aware that it is open to me to seek advice from someone who specialises in advising on investments. I confirm that I have the necessary knowledge and experience to make my own decisions in relation to investments in unquoted smaller companies.

I understand that Rockpool will store my personal information and will send me details of investments and other relevant information. My personal information will be protected in line with Rockpool’s privacy policy. I accept that information relating to investment opportunities will be provided to me on a strictly confidential basis and I undertake not to disclose such information to any person without prior written permission from Rockpool

Rockpool will hold and process your data in order to fulfil our legitimate interest in serving you and communicating with you and in complying with regulatory and legal requirements. For details of how and why we process your data and details of how to exercise your rights, please visit Rockpool’s Privacy Notice.

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High net worth investor declaration

Signdate HNW full*

Thank you. To access Rockpool opportunities you will need to agree to the declaration below. Please read it carefully. It does not commit you to invest or pay any money.

I declare that for the purposes of the Financial Services and Markets Act (Financial Promotion) Order 2005 because at least one of the following applies:

I am a director or employee of a company with net assets of at least £5m

a director or employee of a company with net assets of at least at least £500,000 and the company has more than 20 shareholders

a trustee of a trust with assets of £10m or more

I understand that this means:

I can receive financial promotions that may not have been approved by a person authorised by the Financial Conduct Authority;

the content of such financial promotions may not conform to rules issued by the Financial Conduct Authority;

I understand that by making this declaration I may lose significant rights:

I may have no right to complain to either the Financial Conduct Authority or the Financial Ombudsman Scheme;

I may have no right to seek compensation from the Financial Services Compensation Scheme.

I accept that I can lose the money I invest by making investment decisions based on financial promotions. I am aware that it is open to me to seek advice from someone who specialises in advising on investments.

I understand that Rockpool will store my personal information and will send me details of investments and other relevant information. My personal information will be protected in line with Rockpool’s privacy policy. I accept that information relating to investment opportunities will be provided to me on a strictly confidential basis and I undertake not to disclose such information to any person without prior written permission from Rockpool.

Rockpool will hold and process your data in order to fulfil our legitimate interest in serving you and communicating with you and in complying with regulatory and legal requirements. For details of how and why we process your data and details of how to exercise your rights, please visit Rockpool’s Privacy Notice.

*

Other investor declaration

Thank you. To access Rockpool opportunities you will need to agree to the declaration below. Please read it carefully. It does not commit you to invest or pay any money.

I undertake not to invest personally in any investment opportunity promoted by Rockpool unless I have provided a separate declaration in a form satisfactory to Rockpool that I am eligible to make such investments.

I accept that information relating to investment opportunities will be provided to me on a strictly confidential basis and I undertake not to disclose such information to any person without prior written permission from Rockpool.

I understand that Rockpool will store my personal information and will send me details of investments and other relevant information. My personal information will be protected in line with Rockpool’s privacy policy.

Rockpool will hold and process your data in order to fulfil our legitimate interest in serving you and communicating with you and in complying with regulatory and legal requirements. For details of how and why we process your data and details of how to exercise your rights, please visit Rockpool’s Privacy Notice.

Benefits of registering

Tax-efficient ways to invest, such as the Rockpool SIPP and the Rockpool IFISA.

Your capital will be at risk and there is no guarantee of any investment return. The value of investments may go down and you could lose all of your investment. Private company investments are not listed on any market and this means that you may not be able to sell them when you want to do so. This sort of investment does not provide a reliable source of income. The tax benefits of private company investing depend on your personal circumstances and on compliance with the relevant rules. Past performance is not a reliable indicator of future results. We do not provide investment, tax or legal advice.
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